- The aim of bankruptcy is to protect your income to ensure your essential needs can be met.
- The amount of income you are entitled to keep depends on how many dependants you have.
- Income you can retain per annum in after tax dollars is:
|Over 4 Dependants||$75,406.97|
- Amounts you earn over your ‘Threshold Amount’ in after tax dollars – you keep half and the other half is paid to your bankrupt estate.
- The ‘Threshold Amount’ is adjusted twice a year, 20 March and 20 September.
- A dependant is a person who resides with you that does not earn more than $3,452 per annum before tax (no tax payable at this level of income).
- A husband and wife can each claim all their children as dependants.
- The ‘Threshold Amount’ is increased by amounts paid through the Child Support Agency for the support of children from a previous relationship.
- A separated couple can each claim their children as dependants if they have joint custody and they each have a bedroom allocated for the child.
Further and more detailed information on income during bankruptcy can be obtained from this website or by calling Alan Nicholls on 1300 060 122